No NFC in Next-Generation iPhone

[lazard]

I dont think they will throw all of their last few years of work away, dont think there is room for two systems. So no I dont think they will. Either Apple comes to the party or not.

true...it would probably play out like Bluray vs HD DVD with only one side prevailing.

 

[Geckotek]

Developing a payment system goes against Apple's core business strategy. I don't understand why people would buy into this. Also, how would they monetize it?

 

[NT1440]

Developing a payment system goes against Apple's core business strategy. I don't understand why people would buy into this. Also, how would they monetize it?

How does it go against making money?

If Apple is the player that breaks open the micro-transaction/banking revolution, it will be the biggest industry shakeup yet.

 

[Geckotek]

How does it go against making money?

If Apple is the player that breaks open the micro-transaction/banking revolution, it will be the biggest industry shakeup yet.

Making money is not a strategy.

You failed to answer my question.

 

[nick_elt]

true...it would probably play out like Bluray vs HD DVD with only one side prevailing.

And as big of a company Apple is, they cant compete with the big boys when it comes to mobile payments. Cant see it happening. No way.

 

[dv8r]

What are you talking about?

Look at how itunes broke out the music industry, you get a ton of labels and a few with some very hefty weight then the rest come through . Apple is the only one with enough sway today to do something similar with mobile payments. They've been building towards this for years, do you seriously think these things are just beginning to take shape?

You have a fundamental misunderstanding of how business cycles work my friend. Things like this are in the works for generations (technology speaking) before they hit the market.

Hint: Who has Apple had partnerships with for years now to allow payment for iTunes? ALL the major credit card companies!

You do know that there is a difference? iTunes is one POS - a competing system to NFC is something far more complex than what is essentially nothing more than a web-shop.

 

[xero9]

I think I'm going to take a pass on the next iPhone if it doesn't include NFC. I've been excited about seeing Android devices and being able to use Google Wallet. Was hoping the iPhone would include this to push it in to prime time.

 

[nick_elt]

What are you talking about?

Look at how itunes broke out the music industry, you get a ton of labels and a few with some very hefty weight then the rest come through . Apple is the only one with enough sway today to do something similar with mobile payments. They've been building towards this for years, do you seriously think these things are just beginning to take shape?

You have a fundamental misunderstanding of how business cycles work my friend. Things like this are in the works for generations (technology speaking) before they hit the market.

Hint: Who has Apple had partnerships with for years now to allow payment for iTunes? ALL the major credit card companies!

But all major credit card companies accept all business. You think they want Apple muscling in on THEIR turf?

 

[NT1440]

Making money is not a strategy.

You failed to answer my question.

You never properly defined youre question so I really don't know what to say. What about mobile payments goes against their core strategy? In fact what exactly do you think their current core strategy is?

As for monetizing it, exactly as the credit card industry works today, they get a cut. When you use a credit card at a store the store pays per swipe (which is why big retailers prefer you use their card, no fee to them), surely apple would just get a cut of that fee.

It works for apple because its a huge leap forward for convenience for their customers, furthering their "what can't it do" strategy.

It works for payment companies because it unlocks literally billions of small transactions between super small businesses (and most likely directly between individuals) for their revenue streams.

Hopefully that helps you get a better understanding of where I think apple is positioned on this.

Feel free to pick it apart or just to discuss, I think more of us need to see the big shakeups coming down the pipe for what they are.

 

[Geckotek]

And as big of a company Apple is, they cant compete with the big boys when it comes to mobile payments. Cant see it happening. No way.

I think they could compete if they wanted, I just don't think they would want to. It's so left field, nowhere near their core business. Monetizing it would be an issue as well.

 

[NT1440]

But all major credit card companies accept all business. You think they want Apple muscling in on THEIR turf?

No...they don't. There are plenty of places that don't take Discover, Amex, etc.

And it wouldn't be muscling onto their turf, itd be a direct partnership with them. All apple would be doing is giving people an even more convenient way to use their credit, something these companies are most likely drooling over.

 

[cwwilson]

I love how fanboys spin spin spinny spin spin things. If NFC was confirmed to be in the next iPhone, people would be jumping for joy. But now that it's not in, "oh that's okay, no big deal". Yeah, just like with MMS, flash on a camera, video recording, improved notifications and tons of other stuff that the iPhone was slow to adopt. Hell, it's gone this long with a small, non-HD screen and no LTE to boot. Yet, when the iPhone does get those things, you'll be wondering how you ever got by without it.

Come on, this is a crushing blow to NFC adoption.

 

[xero9]

But all major credit card companies accept all business. You think they want Apple muscling in on THEIR turf?

How would Apple being muscling in on Visa/MasterCard/Amex turf?

While I don't fully understand the inner workings of the financial world, I assume these payments would ultimately be processed through MasterCard.

 

[nick_elt]

I think they could compete if they wanted, I just don't think they would want to. It's so left field, nowhere near their core business. Monetizing it would be an issue as well.

Well they have over 100billion in the bank, if they REALLY wanted of course they could, but as you say it would be too risky, Apple doesnt take too many risks, they never buy stupid aquisitions. Its not going to happen.

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No...they don't. There are plenty of places that don't take Discover, Amex, etc.

And it wouldn't be muscling onto their turf, itd be a direct partnership with them. All apple would be doing is giving people an even more convenient way to use their credit, something these companies are most likely drooling over.

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How would Apple being muscling in on Visa/MasterCard/Amex turf?

While I don't fully understand the inner workings of the financial world, I assume these payments would ultimately be processed through MasterCard.

Its Apple, you think they wouldnt want their 30%? And do you think they are willing to give it to them?

 

[NT1440]

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Ok, Im talking about mastercard/visa, im not in the states just so you know. But in Australasia Europe they are accepted everywhere.

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Ah, the joys of having consumer protections....

Ameeeeerica!

 

[nick_elt]

Just wondering, if its not an nfc chip, what is it???

 

[Geckotek]

You never properly defined youre question so I really don't know what to say.

My question was 5 words long and ended with a question mark. How can you miss that?

What about mobile payments goes against their core strategy? In fact what exactly do you think their current core strategy is?

Tim Cook:


"Yeah, that is a great question. The executive team of the company spends a lot of time thinking and discussing how to retain and recruit the best talent in the world, because at the end of the day—I know it's a cliche—but people are our most important asset by far, and it's people that deliver innovation, which is key to us. And so what else do we do other than that? Well, we are the most focused company that I know of, or have read of, or have any knowledge of. We say no to good ideas every day; we say no to great ideas in order to keep the amount of things we focus on very small in number, so that we can put enormous energy behind the ones we do choose, so that we can deliver the best products in the world. In fact, the table that each of you are sitting at today, you could probably put every product on it that Apple makes, and yet Apple's revenue last year was over $40bn. I think the only other company that could say that is an oil company.

Edit: This isn't the quote I was looking for, but close enough for now.

Short and sweet, pick only a few key products and give them your full attention. Starting a mobile payment strategy is something Google or the old Microsoft would do....not Apple.

As for monetizing it, exactly as the credit card industry works today, they get a cut. When you use a credit card at a store the store pays per swipe (which is why big retailers prefer you use their card, no fee to them), surely apple would just get a cut of that fee.

Ah, you did see my question. And how would they get a cut of that fee? Why would the credit card processors give them a cut? That cut is often split at least 2 ways already (merchant bank and card issuer), what would motivate them to give Apple a cut? They don't give PayPal a cut. They don't give Google a cut. Why Apple all of a sudden? Apple provides them with no advantage to their current solutions.

It works for payment companies because it unlocks literally billions of small transactions between super small businesses (and most likely directly between individuals) for their revenue streams.

Not understanding what you're saying here. We can already use our cards for super small transactions. How would it change? In fact, super small transactions is something Apple currently fights by charging your iTunes transactions only after reaching a certain value or time. PayPal now does the same.

I think more of us need to see the big shakeups coming down the pipe for what they are.

Once again, not seeing what would exactly be shaken. It would be business as usual, except that I swipe my phone instead of a card. The transaction still gets processed through one of the usual merchant banks and card processors. Unless Apple is going to become a bank?

 

[Glideslope]

Maybe in your village, i use pay pass daily and also use it in my restaurant.

Not ready in the US. Next Sept Boys.

 

[chagla]

I am currently using an Galaxy S3... on my 30 day trial... waiting to see what Apple brings to the table...

Google Wallet only works out of the box on Sprint. To use it on other carriers, you need to be rooted and install some hacks to get Google Wallet to run.

But... once you have it, it is pretty cool to pay for my 44 oz soda at Circle K using my phone.

if you have an android device, please try the following apps

airdroid - literally do 90% of the things on your phone without touching it, through wifi on any computer.

gesture search - very handy handwriting recognition, universal indexing of your contacts, music, apps. so by just making a "T" will show you everything with letter T, gets more precise with each subsequent letter. erase by swiping left.

zdbox - nice little utility, does few things and most importantly acts as an "app locker". lock apps on your phone with a pw.

 

[Glideslope]

u live in upstate NY?

Not quite, but not down enough to be in the land of Urine and Tuberculosis.

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While technology I believe is there, I think Apple feels like in FC is really not widespread enough to make it worth their while to include it in this release of the iPhone. That this will be a great feature to stick in the iPhone 5S version, there is no doubt… and hopefully we will see you sometime in 2013 of that holiday season.

With the wide amount of identity theft in this country, I think a lot of people are wary about such a system. It may be very secure, but I don't think I would use it just yet until I see just exactly how it works and how secure it is.

Bingo.

 

[Geckotek]

NFC is no more risky than using a credit card.

Seems that's not true...

http://www.qrcodestickers.org/qr-code-articles/risks-of-nfc.html

 

[blackhand1001]

Duh.

The payment infrastructure hasn't been built out. NFC works great in Japan, South Korea, etc. because those countries have largely decided the dominant contactless payment systems.

Particularly in the United States, there is no major NFC contactless payment system. Apple isn't going to roll out an NFC-enabled handset until the world widely deploys a system. It's why the original iPhone was only a 2G device. Apple prioritizes compatibility with widespread network deployment, rather than catering to a new technology that is only available in a handful of markets

(Siri is an exception, but then again, Siri is a beta software service).

There are tons of a stores that take google wallet. Any store that takes ExpressPay - American Express
PayPass - MasterCard
Zip - Discover
payWave - Visa

works with google wallet. If the credit card machine was made in the last 5-6 years it has this capability most likely. I have been able to use google wallet at many stores.

IF you see that little sidways wifi looking symbol google wallet will work.

 

[verniesgarden]

There are tons of a stores that take google wallet. Any store that takes ExpressPay - American Express
PayPass - MasterCard
Zip - Discover
payWave - Visa

works with google wallet. If the credit card machine was made in the last 5-6 years it has this capability most likely. I have been able to use google wallet at many stores.

Image

IF you see that little sidways wifi looking symbol google wallet will work.

not always true, there's a ton of terminals installed but the store's not paying to have the NFC network enabled. just like swiping units, they can swipe any credit cards but that doesn't mean all are accepted

 

[blackhand1001]

not always true, there's a ton of terminals installed but the store's not paying to have the NFC network enabled. just like swiping units, they can swipe any credit cards but that doesn't mean all are accepted

Its worked at everyone I have tried. If they take MasterCard pay pass it will work.

 

[Geckotek]

Its worked at everyone I have tried. If they take MasterCard pay pass it will work.

He's saying a lot of the terminals aren't enabled. I've experienced the same.